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Buy Bharti Infratel; target of Rs 285: Dolat Capital Market

Dolat Capital Market is bullish on Bharti Infratel has recommended buy rating on the stock with a target price of Rs 285 in its research report dated October 26, 2020.

October 27, 2020 / 01:02 PM IST
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Dolat Capital Market's research report on Bharti Infratel

Bharti Infratel (BHIN) Q2FY21 was operationally healthy lead by strong tower additions, tenancy growth and rental/tenant. Energy spread was negative for 2nd consecutive quarter. BHIN’s short-term prognosis remains significantly positive led by potential tariff increase in the telecom sector and/or fund-raise by VIL. More importantly, BHIN-Indus merger would conclude within a month and the combined entity would declare a dividend of Rs 48bn (Rs 17.8/sh ~9.5% yield) within 3Ms. We have marginally increased our estimates to factor in the robust growth.


Reiterate BUY with revised TP of Rs 285 @ 15x Sep-22E EPS.  The medium-term risk for BHIN are wrt survivability of VIL. Shutdown of VIL may significantly impact the business of BHIN. For BHIN+100% Indus it may lead to ~40-45% reduction in tenancies in our view. However, we don’t foresee it playing out over next 18-24m. Risk of reduction in rentals/tenant on renewals as tenancies come out of lock-in in FY23 (similar to energy spread correction) is another key risk.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Oct 27, 2020 01:02 pm

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